Gold Prices in India Taper Marginally from Record High, Nifty-Gold Ratio Inches Closer to 1.50

Gold Prices in India Continue to Decline Amid Rising US Dollar and Crude Oil Prices

MCX Gold Rate ended at ₹1,37,700 per 10 gm on 31 December 2025, but has since declined to ₹1,56,750, a drop of around ₹24,000 from its record high of ₹1,87,779. The gold price has been range-bound due to a rising US Dollar and soaring crude oil prices.

Key Factors Driving Gold Prices

Gold prices are closely tied to crude oil prices and the US Dollar. The Brent Crude Oil price has risen from $65/barrel to $100/barrel, strengthening the US Dollar and putting downward pressure on gold prices. However, with stable oil prices and the US Dollar beginning to erase its recent gains, gold prices may experience a resurgence.

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Outlook for MCX Gold Rate

The MCX Gold Rate is expected to hover around the ₹1,56,500 to ₹1,57,500 range, indicating a phase of consolidation or mild profit booking. Strong demand is seen in the ₹1,55,000 to ₹1,56,000 zone, which continues to act as a key support base. A decisive breakout above ₹1,59,000 could revive upward momentum.

Nifty-Gold Ratio

The Nifty 50 index is currently around 23,600, while the MCX gold rate is around ₹15,675 per gm, resulting in a Nifty-gold ratio of 1.50. According to Amit Goel, Chief Global Strategist at PACE 360, if the ratio moves above 2.50, the chances of gold outshining equity are higher. Conversely, if the ratio falls below 2.50, equity is likely to outperform gold.

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Investment Opportunities

Amit Goel suggests buying the Nifty 50 ETF, which may deliver 5% to 8% returns by the end of April 2026. This investment opportunity presents a higher return potential compared to investing in gold.